One of the skimpy details
of idiot Trump’s tax “plan” is to offset lower rates with the removal of tax
deductions and “loopholes”.
This is a very sound
concept that should be embraced in whatever the eventual tax reform package
will actually look like.
I have always strongly
felt, and continue to do so, that the tax return should not be used to
distribute government social welfare and other program benefits. So I believe that items like the Earned
Income Credit, the Additional Child Tax Credit, the Advance Premium Credit, the
various education tax benefits, and other similar “tax expenditures”, while the
idea behind them may be appropriate and acceptable, should be removed from the
Tax Code. These benefits should be
distributed in other ways.
Here are some of the deductions
whose removal from the tax return I would support.
ü Real estate tax deduction for all
personal real estate other than the primary principal residence.
ü Personal property tax deduction.
ü State and local sales tax deduction.
ü Acquisition debt mortgage interest
deduction for a second personal residence.
ü Home-equity debt mortgage interest deduction
– the deduction for interest on home equity borrowing not used to buy, build,
or substantially improve a taxpayer’s principal primary residence.
ü Deduction of mortgage insurance
premiums as mortgage interest (already gone).
ü Depreciation deduction for real
estate and capital improvements thereto.
ü Depreciation deduction for business
use of a personal automobile.
ü Auto loan interest deduction for
business use of a personal automobile.
ü Auto lease payment deduction for
business use of a personal automobile.
ü
The
adjustment to income for Educator Expenses (why should teachers only be given
this benefit and not other public service employees like police, fire, EMTs,
stc?).
I discuss the reasoning for my choices in detail in A TAX PROFESSIONAL FOR TAX REFORM.
What deductions would you keep and what deductions
would you remove?
TTFN
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